BRITISH GAS TO STEP UP OPERATIONS IN GULF OF THAILAND

British Gas plc has agreed to take a farmout on and become operator of PTT Exploration & Production's (Pttep) B-5/27 block in the Gulf of Thailand. Pttep is the upstream arm of state owned Petroleum Authority of Thailand. BG's agreement, covering a 50% interest in the block, marks its second major upstream venture in Thailand. In March 1990, BG acquired a 20% interest in Bongkot gas field development. Under the latest contract, following an August 1990 agreement in principle, BG is

Feb. 11, 1991

2 min read

British Gas plc has agreed to take a farmout on and become operator of PTT Exploration & Production's (Pttep) B-5/27 block in the Gulf of Thailand.

Pttep is the upstream arm of state owned Petroleum Authority of Thailand.

BG's agreement, covering a 50% interest in the block, marks its second major upstream venture in Thailand. In March 1990, BG acquired a 20% interest in Bongkot gas field development.

Under the latest contract, following an August 1990 agreement in principle, BG is committed to spend at least $8 million for exploration in 8 years on the 15,320 sq km block.

During the first 3 years, BG is to spend at least $4 million for exploratory work, including shooting 3,000 line km of seismic surveys and drilling one exploratory well. A second 5 year commitment calls for shooting 1,500 line km of seismic and drilling another exploratory well.

BG agreed to absorb all exploration costs incurred during the 8 year term. Pttep reserves the right to assume operatorship of the tract 5 years after commercial hydrocarbons are first produced from the acreage.

Pttep estimates structures underlying the acreage, just north of Thai Shell Exploration & Production's suspended Nang Nuan oil field, could contain a resource of at least 165 million bbl of oil.